The stock market dropped on Tuesday as new labor data was higher than expected that further raised inflation concerns. According to the Bureau of Labor Statistics, employment cost index, which measures compensation and benefits, rose 1.2% in the first quarter of 2024. This was above the 1.0% estimate.
Meanwhile, the Federal Reserve is set to release its latest interest rate decision on Wednesday.
Overall, S&P 500 fell 1.6% to 5,036, while NASDAQ declined 2.0% to 15,658.
Tweet of the Day
Relative strength in financial stocks is usually bullish since they tend to lead the overall market.
Relative strength in energy stocks is usually bearish since they tend to lag the overall market.
Both have been generating relative strength lately (bottom clips).
Your move. pic.twitter.com/hr0cgJnay7
— Walter Deemer (@WalterDeemer) April 20, 2024
Chart of the Day
Here is the ten-year chart of Lululemon (LULU) as of April 2, 2024, when the stock was at $378.
Lululemon stock fell after the company released earnings as American stores showed slowing growth. Sales in the US increased just 9% last quarter as International sales jumped 36%. It was even worse in US same-store sales, which increased only 5% within stores. After the results were released, analysts lowered profit estimates. This was the first decrease in estimates in more than 2.5 years. Overall, Lululemon delivered 20% profit growth on 16% revenue growth last quarter.
LULU is part of the Growth Portfolio and Aggressive Growth Portfolio. David Sharek, Founder of School of Hard Stocks, thinks that LULU is a 25% grower in the long term.
